Chapter

The Impact of Regulations on Brazilian Labor Market Performance

Ricardo Paes De Barros and Carlos Henrique Corseuil

in Law and Employment

Published by University of Chicago Press

Published in print October 2004 | ISBN: 9780226322827
Published online March 2013 | e-ISBN: 9780226322858 | DOI: http://dx.doi.org/10.7208/chicago/9780226322858.003.0006
The Impact of Regulations on Brazilian Labor Market Performance

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Labor market regulations are invariably introduced with two objectives. The first one is to improve the welfare of the labor force, even at the cost of introducing some degree of economic inefficiency. The second consists of improving efficiency, when external factors and/or other labor market imperfections are present. The first section of this chapter briefly describes the 1988 constitutional change, with special emphasis on the topics related to labor costs, which, basically, will be used as the main sources of variation on labor market regulations. The two sections that follow the institutional analysis focus on the two alternative measures of labor market performance. The next section is dedicated to the description and implementation of the regression analysis through which to estimate the parameters of labor demand. Section 5.4 contains the description and results achieved when turnover rates are used to measure labor market performance according to difference-in-differences methodology complemented by regression analysis. Finally, the last section summarizes the main findings.

Keywords: labor market regulation; labor market performance; Brazilian labor market; labor force; labor costs; welfare

Chapter.  15795 words.  Illustrated.

Subjects: Company and Commercial Law

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